In consonance with its name of Triodos or ‘three way’, Triodos Bank has built its business model on the three pillars of people, planet and profits. The belief of the bank is simple and its mission is lucid - it finances companies, institutions and projects that add cultural value and benefit people and environment with the support of depositors and investors who wish to encourage social responsibility and a sustainable society.
Innovation
The money of socially and environmentally conscious depositors and investors is channelized toward businesses that are committed to positive change in the world through personal banking, business and charity banking, and investment banking options provided by the bank. The personal banking option ensures that the saver receives a healthy return on the deposit while being a part of the community that wants to make a genuine change. Through its business and charity banking offering the bank partners with organizations that share its values. The investment banking service helps raise capital, manage venture capital funds, and brings together like-minded investors by providing information on conscious investment opportunities. The bank has established a benchmark for financial transparency and in the process has raised the financial literacy of its customers.
It has also the honor of being the pioneer in green investment funds in the Netherlands. In partnership with the insurance company Delta Lloyd, the bank launched the first Dutch combined life insurance and pension insurance product that screens its investments using social and environmental criteria. Other creative ways for generating opportunities for investors to make profits by investing in environmentally conscious projects was done via its ‘Wind Fun’ and ‘Solar Investment Funds’ that finances solar energy projects in developing countries. Further, ‘Triodos Fair Share Fund’ offers private individuals and institutions the chance to invest in microfinance institutions in developing countries. Continuing its tradition of innovative and conscious financial products, the bank designed a ‘Real Estate Fund’ that invests exclusively in sustainable buildings. Living up to its belief of adding cultural value ‘Triodos Culture Fund’ was launched that provides loans for promoting art and culture.
In addition to the creative investment opportunities, the bank finances practical and well grounded initiatives that are dedicated to positive change. The bank lends to organizations like charities, social businesses, community projects and environmental initiatives that benefit the community, environment and human development. Specifically, investing in environmental benefit is done through organic farming, organic food and environmental technology projects. The areas of social business that are served through the bank’s offerings are trade, manufacturing, services, catering and business enterprise centers. Culture and welfare is encouraged through lending to borrowers who work to meet individual and community needs like providing healthcare and education as well as those working in arts and social projects. The bank also gives money to innovative social housing projects that respond to acute shortage of adequate housing in the UK. Religious and spiritual groups that respect human freedom also feature in the bank’s list of borrowers.
A realization of the power of partnerships encouraged the bank to network with organizations that help connect people’s money with the cause closest to their hearts. The bank has successfully able to harness the commitment of its depositors and investors with groups like ‘Friends of the Earth’ and ‘The Soil Association’ to create a powerful force for change.
Impact
The bank has experienced spiraling success as evidenced by its rate of growth in net profit of almost 46% in 2007, a year touted as turbulent for the banking industry. It lent 33 million pounds to charities and social enterprises in 2007, more than doubling the previous year’s results. The idea that Triodos continues to grow and make profit, while courageously maintaining its high ideals and original vision, has given it a strong voice in Europe-wide dialogues about how the banking industry and financial institutions participate in positive change for society. Its shareholders, who are more interested in Triodos’ core mission of contributing to a more sustainable society than they are in maximizing the last ounce of profit, are a testament to its direct impact in fighting the prevailing short term perspective that threatens sustainability.
The fact that the bank spearheaded and achieved success for itself in green funding has snowballed into the market for green investment fund totallling more than six billion euro in the Netherlands alone and have spread across the developed west over the last 15 years. Since its inception, the bank has helped many microfinance institutions to become microfinance banks by providing both funding and training. By being a bridge between green sector and poverty alleviation for more traditional institutions, the bank has truly made a sustainable positive impact.
Inspiration
The inspiration behind the bank’s initiatives and programs lodges in its desire to create a society that has human dignity at its core. The bank stands as an exemplar of how unbounded and versatile potential of money can be innovatively leveraged to encourage its use in a more conscientious manner, in turn actuating benefits that touch people and the environment in sustainable ways.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
